Three Vital Things You Need to Know Before Credit Lines

Piggyback credit lines are also documented as the process of becoming an authorized user, when you’re added to someone else’s credit card account, with the objective of establishing your credit background as well as increasing your credit score. It's worth nothing that there’re possible risks associated with its practice and secondly, piggybacking should not be taken as a long term solution for building or boosting your credit status. Thereby, you’re recommended to use it as the staircase to establish your credit rate and equally carry out positive actions that help construct your own credit score.

How Piggyback Credit Line Works?

Simply put, if a person has a reasonable credit score adds you as an AU or an authorized user to his/her credit line or card accounts, the credit background of that person becomes a part of your own credit report. For instance, if that account has been opened for 10 years and shows consistency of credit history, your credit report would replicate that positive credit information while demonstrating your creditworthiness to public banks or private lending companies. Until the primary cardholder maintains a positive payment history and equally keeps his credit utilization ratio low, you will definitely find a solid boost in the credit scores, that you’re looking for. Nevertheless, in case the primary cardholder fails to pay dues in time or become a defaulter, this could equally damage your credit score as well. Typically, under such a situation, for your own interest, you need to request the tradeline company that linked you with the primary cardholder to discontinue you as AU from that account.

Secondly, before choosing the tradeline or the credit card to which you wish to add yourself in course of piggybacking, make a point that apart from global standard banks, such as American Express, Citibank, Bank of America, and more not all credit card issuers report about authorized users to the major three credit bureaus including Experian, Equifax, and TransUnion.

What Do Piggyback Companies Do?

Now we know that piggyback is aka adding as AU. Notably, piggyback is not any new approach in the credit industry but has been practiced for more than decades mainly in the family circle, like parents are allowing their adult sons/daughters as AU to their credit line. However, for many individuals, it’s quite difficult to get somebody with a good credit score to piggyback on. Here comes a tradeline company or vendor to play the role of an intermediary while helping to connect people on the lookout for buying tradelines having high-class tradelines to offer. Piggybacking agencies are also referred to as tradeline companies that facilitate the buyer and seller of tradelines (credit cards) while bringing them together in a platform to perform a deal.

Aside from being an intermediary while specializing in buying and selling tradelines, professional piggyback companies protect the identities of their clients and prevent fraud.

Whether Buying/Selling of Tradeline Is Illegal?

It is definitely a major market buzz that wonders people interested in buying or selling tradelines whether or not the process of piggyback credit lines is legitimate! Opposing this controversies, it should be said that piggybacking is not anything new in the US credit market and has been intimately related as a part of American daily-life and unless and until it is used in an illegal way, adding tradelines to a credit report is one hundred percent lawful.

 

Improve My Credit Fitness offers services to increase your credit score that helps to reach your goals such as opening a new credit card ( improvemycreditfitness.com/Piggyback-Credit-Lines ), buying a home, finance a car, get a new job, or simply move to a new place. To know more, visit improvemycreditfitness.com/blog.

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